Blue-Chip Dividend Stocks

While most funds have struggled lately, Federated Strategic Value Dividend (SVAAX) has soared. Federated returned 11.9% in the past year, topping 99% of large value funds and surpassing the S&P 500 by 11 percentage points, according to Morningstar. The winning streak occurred because Federated focuses on one of the market's hottest segments: blue-chip dividend stocks. The portfolio is full of such familiar names as H.J. Heinz (HNZ) and Johnson & Johnson (JNJ), rock-solid companies that have appealed to nervous investors.

Portfolio manager Daniel Peris follows a disciplined strategy that he describes in a recent book, The Strategic Dividend Investor. The book makes the case for buying stocks that have yields ranging from about 3% to 8%. "We are trying to offer our clients consistent income that will grow modestly over time," Peris says.

Source: The Street

Related Articles:
- Pre-Screening Dividend Stocks - Part III
- Pre-Screening Dividend Stocks - Part II
- Pre-Screening Dividend Stocks - Part I
- Sometimes Being Right Is Just Wrong
- When Is A Lot of Cash A Bad Thing?